Netflix Inc. (Nasdaq: NFLX) today announced updated guidance for the third and fourth quarters of 2008.

Third-Quarter 2008

The company said it expects net income and EPS will be comfortably within its previous guidance, which was GAAP net income of $16 million to $21 million, and GAAP EPS of $0.26 to $0.34 per diluted share.

Excluding the one-time $6.5 million credit given to subscribers related to the August service interruption, third-quarter revenue is also expected to be within the company's previous guidance of $343 million to $348 million.

Netflix ended the third quarter with approximately 8.672 million subscribers, just below the low end of its previous guidance of 8.675 million to 8.875 million subscribers. Subscribers grew 23 percent year-over-year from 7,028,000 total subscribers at the end of the third quarter of 2007 and 3 percent sequentially from 8,411,000 subscribers at the end of the second quarter of 2008.

"Net subscriber growth in July was in line with expectations but August was unusually weak", said CFO Barry McCarthy. "In September, the business regained momentum with results slightly below original expectations, likely due to the economic climate."

    Fourth-Quarter 2008
    The company revised guidance for the fourth quarter as follows:

    -- Ending subscribers of 8.95 million to 9.25 million, down from 9.1
       million to 9.7 million
    -- Revenue of $353 million to $359 million, down from $357 million to $367
       million
    -- GAAP net income of $18 million to $23 million, unchanged from prior
       guidance
    -- GAAP EPS of $0.30 to $0.38, increased slightly from $0.29 to $0.37

About Netflix, Inc.

Netflix, Inc. (Nadsaq: NFLX) is the world's largest online movie rental service, with more than eight million subscribers. For one low monthly price, Netflix members can get DVDs delivered to their homes and can instantly watch movies and TV episodes streamed to their TVs and PCs, all in unlimited amounts. Members can choose from over 100,000 DVD titles and a growing library of more than 12,000 choices that can be watched instantly. There are never any due dates or late fees. DVDs are delivered free to members by first class mail, with a postage-paid return envelope, from over 100 U.S. shipping points. More than 95 percent of Netflix members live in areas that generally receive shipments in one business day. Netflix is also partnering with leading consumer electronics companies to offer a range of devices that can instantly stream movies and TV episodes to members' TVs from Netflix. For more information, visit http://ir.netflix.com.